In Opposition to Request for Expedited Discovery, Synergy Concedes
that it is Negotiating with United to Borrow Hundreds of Millions of
Dollars

March 29, 2017 04:47 PM Eastern Time

NASSAU, Bahamas--(EON: Enhanced Online News)--Kingsland Holdings Limited (“Kingsland”), minority shareholder of
Avianca Holdings S.A. (“Avianca”), today issued a statement in response
to court filings seeking to deny Kingsland’s request for expedited
discovery. Kingsland is pursuing this discovery in connection with its
motion for preliminary injunctive relief to prevent Avianca’s
controlling shareholder, Synergy Aerospace Corp. (“Synergy”), and Germán
Efromovich from proceeding with their unlawful attempt to force through
a transaction with United that primarily benefits Efromovich and Synergy.

“In its papers, Synergy concedes that it is actively negotiating with
United to obtain a loan for itself as part of a United-Avianca
transaction, just as Kingsland has alleged in its lawsuit. Synergy
merely disputes the terminology used to describe the negotiations and
the amount of the loan being discussed, yet any loan at all is improper
and damaging to Avianca and its shareholders. Synergy has conceded a
fact central to Kingsland’s request for an injunction. As
alleged, Synergy is using its control of Avianca to extract benefits
from United that flow to Synergy, not to Avianca, as part of the price
for United to enter a joint venture with Avianca. Synergy is seizing for
its benefit a corporate opportunity – United’s willingness to pay
hundreds of millions of dollars for a joint venture – that rightfully
belongs to Avianca and all of its shareholders. These actions pose
significant risks to Avianca and compelled Kingsland to take steps to
protect the airline and its minority shareholders from further harm.”

On February 28, 2017, Kingsland filed a lawsuit in New York State Court
challenging Synergy’s and Mr. Efromovich’s conduct with respect to
Avianca.

As a significant shareholder, Kingsland Holdings is deeply committed to
the long-term success of Avianca and is pursuing this action to protect
the viability of the company and safeguard the interests of all minority
shareholders. Unfortunately, Germán Efromovich does not share this
commitment to Avianca. Ignoring his fiduciary duty to Avianca’s
shareholders, he is negotiating a self-serving deal with United Airlines
under which hundreds of millions of dollars from United will flow
directly to his holding company, Synergy Aerospace Corporation, with
potentially none of the proceeds from the transaction benefitting
Avianca. This is only the latest example of Germán Efromovich’s
self-dealing at the expense of other shareholders, and Kingsland is
determined that it will be his last.